XRP News Today: Crypto Market Plummets 5.66% as Fed Signals Rate Hike

The global crypto market experienced a significant decline of 5.66%, leaving many investors perplexed. Bitcoin, which had recently been aiming for a breakout above $109,000, dropped back to around $104,000, marking a 3.6% decline in just 24 hours. This downturn was not isolated to Bitcoin; Ethereum, XRP, Solana, and even meme coins like Dogecoin followed suit, with declines ranging from 6% to 15%.

The primary catalyst for this sudden crash appears to be new signals from the U.S. Federal Reserve. Following the release of the latest inflation data, which showed core CPI still above expectations and producer prices rising, the chances of a rate cut in June have nearly vanished. This shift in monetary policy expectations has made investors nervous, leading to a sell-off in crypto prices.

Another significant factor contributing to the decline was the sudden reversal in spot Bitcoin ETFs. After several days of strong inflows, June 12 saw a substantial outflow of $202 million. Fidelity’s ETF alone experienced a $197 million withdrawal, while ARK Invest’s ETF lost over $10 million. This reversal in investor sentiment further exacerbated the downward trend in crypto prices.

Leverage traders also took a significant hit. In the last 24 hours, over 247,000 traders were liquidated, with total liquidations hitting $1.15 billion. The largest single liquidation order was a $201 million long on Binance. If Bitcoin drops further to around $95,800, nearly $11.76 billion worth of long positions are at risk, which could trigger another wave of sell-offs.

Technical indicators also hint at more struggle for Bitcoin. Charts show rejection near the $106K resistance zone, and the MACD is showing a slight bullish crossover, but the momentum is weakening. If Bitcoin fails to hold $104K, we could see a retest of $102K or even $100K soon.

The altcoin market also suffered significantly, closely following Bitcoin’s downward trend. The Altseason Index has dropped to 16, indicating that Bitcoin still holds market dominance. Among the biggest losers, Ethereum (ETH) is now trading near $2,508. XRP, Solana, and Cardano all saw major declines, with no signs of recovery just yet.

Geopolitical risks and macroeconomic uncertainties also played a crucial role in the market's downturn. The escalating tensions in the Middle East, following Israel's attack on Iran's nuclear projects, triggered a risk-off sentiment across global markets. Investors sought safe-haven assets such as gold and bonds, leading to a sell-off in cryptocurrencies as traders braced for potential short-term volatility.

The macroeconomic landscape, characterized by rising inflation data and increasing interest rates, has rattled investor confidence, leading to a broader market-wide risk-off sentiment. The combination of geopolitical risks and macroeconomic uncertainties has created a challenging environment for cryptocurrencies, which are often seen as high-risk assets.

The decline in Bitcoin and altcoins was not limited to a single event or factor. The ongoing tariff threat from the US and the potential implications of heightened trade restrictions have also contributed to the market's downturn. These factors, combined with tighter credit conditions and declining business and consumer confidence, have weighed heavily on the crypto market.

Despite the current challenges, some analysts believe that the recent decline in Bitcoin and altcoins could be a short-term dip rather than a macro-driven slide. The market's reaction to geopolitical events and macroeconomic uncertainties is not uncommon, and historical data suggests that cryptocurrencies have the potential to recover quickly from such setbacks. However, the extent and duration of the recovery will depend on various factors, including the resolution of geopolitical tensions and the stabilization of macroeconomic conditions.